Take-Two Proxy Battle on Tap

Take-Two's management is tight-lipped about the impending proxy battle. The company declined numerous requests for a comment and hasn't publicly disclosed its plans or whether it is negotiating with the shareholder group.

It's a difficult fight for the company's current management to win, though proxy battles are typically stacked in management's favor. But because of the large stake of the activist shareholders, Take-Two might be at a disadvantage.

"Unless this company has near-perfect turnout and every person voted for management, it's difficult to see how Take-Two's existing management can get its way," says Young. Many retail shareholders may not vote, and broker nonvotes will not be counted as votes cast either for or against the proposals.